In today’s technical analysis, we must turn our attention to Cable—British Pound to American Dollar (GBP/USD)—as it makes a significant breakout that could shape the near-term direction of the pair.
Currently, GBP/USD is trading at its highest level since February 2022. This new high is not just a number; it's a technical milestone. The pair is breaking above a key horizontal resistance area, marked with an orange band on the chart. This level has held firm since September 2024 and was tested again in April 2025. Earlier this week, the price made an attempt to climb above it but was swiftly rejected. Today, however, the breakout appears to be holding.
The move is gaining momentum, and as long as the price stays above this resistance—now turned into a support zone—sentiment remains firmly bullish. A sustained daily close above this area could trigger further buying interest and confirm a long-term signal to go long.
The breakout adds to a broader trend of strength in the British Pound, supported by recent economic data and a weaker U.S. dollar backdrop. With bullish momentum building, traders should be watching for follow-through above today’s highs.